The African Growth and Opportunity Act (AGOA), a key cornerstone of US–Africa trade for the past 25 years, is set to expire on September 30.

The programme, launched in 2000, granted duty-free access to the US market for thousands of products from eligible Sub-Saharan African countries. It was intended to drive economic growth and encourage political reform across the continent.

The US government has not renewed AGOA, leaving uncertainty over the future of trade relations between Africa and the United States.

South Africa has been a major beneficiary, in 2024 alone, it exported over $6.5 billion worth of goods to the US under the act, supporting critical industries like automotive manufacturing, agriculture and mining. 

The lapse of the agreement has caused significant concern among South African business leaders. 

The President of the Township Economic Commission of South Africa (TECSA), Bheki Thwala, urges calm and diplomacy. 

 “As the township economic commission, we really call upon the President to resolve this issue in a more mature way and show leadership, so that at the end of the day, we don’t use emotions.” 

VIDEO | CONCERNS OVER FUTURE OF AGOA IN SOUTH AFRICA

Director of Centre for Africa-China Studies at UJ, Prof David Monyae, says that this will affect the poor. “It will have huge implications for the poorest and the majority of the continent. The European Union and China are calling these bullying tactics, which threaten the multilateralism, the global order that has existed since 1945.” 

INFOGRAPHIC | SOUTH AFRICA’S TRADE RELATIONSHIP WITH THE USA

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